Farewell to the Penny

Yunji Choi, staff writer

After more than 230 years in circulation, the U.S.  is saying goodbye to the penny. The copper-colored one-cent coin, featuring President Abraham Lincoln, has long been a symbol of American history and everyday transactions. But in 2025, the U.S. Treasury officially announced it would stop producing new pennies, citing high costs and changing consumer habits. 

The main reason is economics. It costs nearly 3.7 cents to produce a single penny —  more than four times its face value. In 2024 alone, the U.S. Mint spent over $117 million to produce pennies, resulting in a loss of $85 million for the Treasury. This has been a consistent issue for nearly two decades.  

Additionally, the way people pay for things has changed. With the rise of credit cards, mobile payments, and apps like Venmo and Apple Pay, cash usage has dropped significantly. In fact, over 40% of Americans report not using cash at all during a typical week. As a result, pennies often end up forgotten in jars, drawers, or piggy banks, rarely returning to circulation.  

The U.S. Mint struck its final batch of circulating pennies, on   Nov.12, 2025, at its Philadelphia facility. While the coin will remain legally tender, no new pennies will be made for everyday use. Collector editions may still be produced in limited quantities. 

Retailers are now adjusting to a world without pennies. Many stores have begun rounding cash transactions to the nearest five cents. For example, if your total is $1.02, it might be rounded down to $1 if it’s $1.03, it could be rounded up to $1.05. This practice is already common in countries like Canada, Australia, and New Zealand which phased out their smallest coins years ago. 

The transition hasn’t been entirely smooth. Retailers, especially those that rely heavily on cash transactions, like fast-food chains and convenience stores, are facing challenges. Some stores have posted signs asking customers to pay with exact change or round up for charity. Others, like Quik Trip, have chosen to round down to avoid customer complaints, even though this means losing money on each transaction.  

Economists estimate that this “rounding tax” could cost U.S. consumers about $6 million annually. For businesses, especially small ones with tight profit margins, the impact could be even greater. Updating point-of-sale systems, retraining staff, and managing coin shortages have added to their operational costs.  

There’s also a legal gray area. At least 10 states have laws requiring exact change for cash transactions, making rounding practices potentially problematic. Retailers are urging Congress to pass legislation that would standardize rounding rules across the country.  

The penny has long been a part of American culture, and it holds nostalgic value for many. Many people even consider pennies lucky. However, public opinion is divided. While some Americans are sad to see the coin go, others welcome the change, viewing the penny as outdated and inconvenient. 

Interestingly, the penny’s elimination has sparked renewed interest in coin collecting. Experts say that while 2025 pennies are unlikely to become valuable, they may serve as a gateway for young collectors to explore the history of U.S. currency.  

The penny’s retirement is part of a broader shift toward a cashless society. As digital payments become the norm, other coins — like the nickel, which costs 13.78 cents to produce — may also be next.  

For now, the penny’s departure is a reminder of how even the smallest changes in our economy can have wide-reaching effects. Whether you’re a shopper, a business owner, or a history buff, the end of the penny marks a significant moment in American life. 

So next time you see a penny, take a moment to appreciate its long journey — and maybe save one as a keepsake.